October 2016 – Ashleigh Mackay and Associates
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Omitting wage roll from gross profit sum insured
October 12, 2016
News

Employee wages represent a significant expense for most businesses, and can become a major cause of underinsurance in the event of a loss. When calculating gross profit sum insured, businesses need to decide whether or not to subtract employee wages – and if so, to what extent. Getting it wrong could have a substantial bearing on the adequacy of that business’s gross profit sum insured. Tackling wage roll misunderstandings When calculating gross profit, accountants will usually subtract employee wages to arrive at a final figure. However, for insurance purposes, the significance of wage roll needs to be determined before deciding whether or not to subtract it. This difference in approach is a regular source of underinsurance. Where does wage roll fit in? Depending on the nature of your customer’s business, a proportion of their wage roll might constitute an uninsured working expense (UWE). By declaring a UWE, you are stating that those wages will not continue following a loss, and…

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Are fire doors doing their job?
October 12, 2016
News

Fires represent one of the greatest threats to tenants and properties, but fire doors can play a pivotal role in minimising losses. There are on average 162 building fires in the UK every day, with 80% occurring in residential properties. Fire doors, if fitted correctly, are a vital safety feature in buildings as they help to prevent the rapid spread of fire and are a legal requirement in a significant proportion of residential properties. However, they are not always used to best effect. Here, we look at some common challenges and explain what you can do to help improve fire safety in properties. Fire door failures are surprisingly common Figures from the London Fire and Rescue Service suggest that in around a dozen fires each year in the capital, there are significant failures due to fire doors having been replaced, left open or fitted incorrectly. Common fire door faults can include: Wedging open of self-closing doors Damage to, or removal of, self-closing devices (typically over-head closers)…

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New energy rules – are landlords ready?
October 12, 2016
News

Whether you own properties in Scotland or England and Wales, you should be aware of new energy performance regulations that are coming into force, firstly in Scotland in September, and then in England and Wales in 2018. Energy performance regulations in Scotland Scotland’s new energy performance regulations, known as Section 63, came into force on 1 September 2016. The changes require property owners to produce an Action Plan for Carbon and Energy Performance (ACEP) at the point of marketing a non-domestic building for sale or let, outlining the measures the new owner should take to improve its energy performance. The required works could vary significantly from property to property, but may include changes to lighting, heating, cooling and ventilation systems. Energy performance regulations in England and Wales In England and Wales, landlords will need to meet Minimum Energy Efficiency Standards (MEES), which require a building to achieve at least an ‘E’ Energy Performance Certificate rating. Lack of awareness There will…

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Robots: what are the risks?
October 12, 2016
News

Machines have been making workplaces more efficient since the Industrial Revolution, but their impact on health and safety is a complex issue. Today, the emergence of robots is bringing significant health and safety benefits to a variety of workplaces, but also new challenges. What kinds of organisations are using robots? Robots are most commonly used in manufacturing, but are increasingly being introduced to a wide variety of industry sectors, from healthcare to retail. The health and safety benefits of robots Robots can carry out tasks that are dangerous for humans to perform, such as lifting or moving heavy objects, or working with hazardous substances. There is also a new generation of wearable robotics devices that can reduce the risk of injury, or aid the rehabilitation of workers who have been injured. However, as a number of well-publicised incidents have demonstrated – including the death of a worker at a VW plant in Germany and a similar incident at a factory…

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What do new health and safety fines mean?
October 12, 2016
News

From February 2016, fines for health and safety (H&S) offences, corporate manslaughter and food safety increased substantially. The increase applies to cases reaching the courts from February 2016, even if the incident that led to the prosecution occurred before that date. You may not be aware that H&S fines are now based on turnover. For example, a company with a turnover of less than £2m can now face a H&S fine up to £450,000; between £2m and £10m, the fine can be up to £1.6m, and a company with a turnover of £10m- £50m could face a fine up to £4m. So-called ‘very large companies’ will be subject to even higher fines. If you are part of a bigger group, it is possible that the court could seek to levy a fine based on total group turnover, and thus increase the level of the fine. These fines are in addition to court legal costs, and there is also potential for…

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